In this April 23, 2020, file photo, President Donald Trump’s name is seen on a stimulus check issued by the IRS to help combat the adverse economic effects of the COVID-19 outbreak, in San Antonio. /Eric Gay, File)
SEATTLE —A Seattle data analytics company will pay more than $1 million to resolve allegations that it improperly received a federal COVID-19 relief loan.
Headset Inc. has agreed to pay $1,012,876 to settle claims that it was ineligible for a Small Business Administration Paycheck Protection Program loan it received in 2021, according to an announcement from First Assistant U.S. Attorney Charles Neil Floyd.
Federal officials said Headset does data analysis for marijuana companies, making it ineligible for the PPP loan and loan forgiveness because the marijuana industry is illegal under federal law. Headset received the PPP loan in February 2021, and the loan was forgiven in August 2021.
In May 2024, Sidesolve LLC filed a qui tam lawsuit alleging Headset was ineligible for the PPP loan due to its work in the marijuana industry. Under the settlement, Sidesolve, as the relator, will receive 10% of the total Headset pays to the government, along with $20,000 for attorney fees and costs.
Under the terms of the settlement, Headset paid $100,000 within 30 days of when the settlement was signed in early August 2026. The company will pay the remaining $900,000-plus over four years, with payments concluding in August 2030.
Headset does not admit wrongdoing, but agreed to resolve the matter with monetary payments to avoid the risks of litigation.
The civil settlement resolves claims brought under the qui tam, or whistleblower, provisions of the False Claims Act, which allow a private party to file an action on behalf of the United States and receive a portion of any recovery.
